MARKETS-STOCKS/EUROPE German DAX opens 0.7 percent lower, extends losses as Greece debt deadline nears

Record ID: 151392

  • Title: MARKETS-STOCKS/EUROPE German DAX opens 0.7 percent lower, extends losses as Greece debt deadline nears
  • Date: 16th June 2015
  • Summary: FRANKFURT, GERMANY (JUNE 16, 2015) (REUTERS) FRANKFURT STOCK EXCHANGE TRADING FLOOR DOWNWARD POINTING DAX CURVE TRADER ON PHONE BOARD SHOWING DAX AT START OF TRADING DAY AT 10,910.01 POINTS VARIOUS OF TRADERS VARIOUS OF BANK SHARES ON BOARD TRADER DAX BOARD (SOUNDBITE) (German) CAPITAL MARKETS ANALYST AT BAADER BANK, ROBERT HALVER, SAYING: "I don't think the Greeks could t
  • Embargoed: 1st July 2015 13:00
  • Keywords:
  • Location: Germany
  • Country: Germany
  • Topics: General
  • Reuters ID: LVA9I4B553N4DHJTNP4ZYN2M5XBT
  • Aspect Ratio: 16:9
  • Story Text: European stocks fell for a third straight day on Tuesday (June 16) as investors grew increasingly worried about a lack of progress in negotiations between Greece and its creditors.
    In Frankfurt, Germany's DAX opened 0.7 percent lower and extended losses to around 1.2 percent within the first 90 minutes of trading.
    Talks between Greece and its creditors broke down on Sunday (June 14) because Athens did not accept the creditors' demands for deeper reforms of pensions, value-added tax (VAT) and of its administration, labour markets and industry.
    Trader Robert Halver of Baader Bank, who has for months has argued for a temporary exit of Greece from the euro zone, said that a VAT rise was unlikely and that the Greek population must be protected from "suffering too much" if the country goes bankrupt.
    "I don't think the Greeks could technically implement a rise in the value added tax. I am firmly convinced that won't happen. So what do we need to do for Greece? Should they go bankrupt -- and they are doing everything to go bankrupt -- we must avoid the Greek population from suffering too much. This means that the supply of energy and medical care must be ensured. We will definitely stay on Greece's side but Greece can then no longer be a euro zone country," Halver told Reuters.
    Greece and its creditors hardened their stances on Monday (June 15) after talks aimed at preventing a default and possible euro exit faltered, prompting Germany's European Union commissioner to say the time had come to prepare for a "state of emergency".
    Greek Finance Minister Yanis Varoufakis said in a German newspaper interview that he is not planning to present new reform proposals at a Eurogroup meeting later this week, according to interview excerpts published on Tuesday.
    Asked if he would present such a list, Varoufakis was quoted as saying: "No, because the Eurogroup (of euro zone finance ministers) is not the right place to present proposals which haven't been discussed and negotiated on a lower level before."
    "Should the Greeks not present a new list of reforms, a national bankruptcy can no longer be avoided, I believe, because the loss of confidence in the creditor countries would be much too big," Halver said at the Frankfurt stock exchange.
    Shortly before noon (1000 GMT), the DAX was down 118 points at 10,868 points, a loss of 1.09 percent.
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